Debt Relief Orders (DRO) - Information & help thread

fatbelly

Most of the answers should be in the official document

https://www.gov.uk/government/publications/debt-relief-orders

PMallinson

Thanks fatbelly - I appreciate your response. I have already seen the info in the link you provided.

My point isn't about finding the information though, it's about removing dead links from the site and replacing them with working ones. Especially on the "stickies", which are somewhat important.

In my case, and I'm guessing a lot of others, there is so much information to read and digest that dead links just make the situation worse... A bit of forum/website housekeeping would really ease the process of dealing with debt, especially for those - like myself - who have depression and find it difficult to keep going when constantly asked to go to this website or that website only to find the site dead.

For example: I went (walked, in person) to my local county court on Thursday last week, to check it was the right place to go for bankruptcy, and to check I had the right forms. They said: "oh, it's all done online now - go to insolvency dot gov dot uk..." which was completely the wrong information. Yet they - like this site - are still telling people to go to a dead website...

With time running out, my energy at the lowest it's ever been in my entire life, and my mind in a bit of a mess about my situation - what I really need right now is some clarity. Not dead ends. I'm really struggling to find the will to live with all of this...

I honestly suggest that those dead links in the "stickies" are removed and replaced with more up-to-date links, rather than them being buried deep within threads.

Many thanks,

Paul M.

fatbelly

PMallinson wrote: »

Thanks fatbelly - I appreciate your response. I have already seen the info in the link you provided.

My point isn't about finding the information though, it's about removing dead links from the site and replacing them with working ones. Especially on the "stickies", which are somewhat important.

In my case, and I'm guessing a lot of others, there is so much information to read and digest that dead links just make the situation worse... A bit of forum/website housekeeping would really ease the process of dealing with debt, especially for those - like myself - who have depression and find it difficult to keep going when constantly asked to go to this website or that website only to find the site dead.

For example: I went (walked, in person) to my local county court on Thursday last week, to check it was the right place to go for bankruptcy, and to check I had the right forms. They said: "oh, it's all done online now - go to insolvency dot gov dot uk..." which was completely the wrong information. Yet they - like this site - are still telling people to go to a dead website...

With time running out, my energy at the lowest it's ever been in my entire life, and my mind in a bit of a mess about my situation - what I really need right now is some clarity. Not dead ends. I'm really struggling to find the will to live with all of this...

I honestly suggest that those dead links in the "stickies" are removed and replaced with more up-to-date links, rather than them being buried deep within threads.

Many thanks,

Paul M.

One for Fermi I think...

lukebetteralone

Hi all.

My sister is on a DMP with stepchange. She didnt include her catalog debts of 2500 as they were on a BNPL plan and has only been on the DMP for 3 months.

These BNPL will be ending soon and she wont be able to afford to pay them. Her budget left her with £38 a month which stepchange sorted out.

Her options at the time were DMP or DRO but she wanted to pay the debts.

Would stepchange still deal will the case and add the catalog debts and sort a DRO application.

She doesnt see her situation improving for the next 12-18 months when she can try and get back to work after having 2 children within 18 months.


Thanks in advance:j

fatbelly

lukebetteralone wrote: »

.

Her options at the time were DMP or DRO but she wanted to pay the debts.

Would stepchange still deal will the case and add the catalog debts and sort a DRO application.

I don't see why not. It was her choice to do a dmp rather than dro. If she now wants to change they should agree. The only issue might be if the extra debt takes her over £15000 total debt but the limit goes up to 20k on 1 Oct.

debtorwithaquestion

Hi guys new to this forum so I hope I am posting correctly and in the right place!

Basically after getting some advice from Payplan they have advised that a DRO is the best solution based upon my circumstances. I do have a few questions however....

1)

I get a standard salary that appears as BASIC PAY on all my payslips. This amount is always the same

I also get London Weighting Allowance which is also the same every month.

Now I take this as my regular, guaranteed income.

However my employer is a big employer and therefore there is a bonus scheme based upon how each team (store) achieves targets ect. This changes every month and can range from £0-£50 (which was the bonus I got this month) and £200.00 (which I got three months ago). There is no guarantee of any bonus and it varies as I said. I have in the past done overtime but this has completely stopped now.

In regards to my budget do I just put down my GUARANTEED income which is the BASIC PAY and LONDON WEIGHTING ALLOWANCE, as this amount is fixed.

If the bonus took me over the £50.00 surplus limit in one month, I may recieve no bonus again the next month.... so how does this work guys any advice would be really appreciated!!!!

It is really annoying because my basic pay never changes and that is fixed but this bonus structure is unreliable but I dont want the OR to question why my wages are higher some months.

2) Next question is:

At the moment regardless of what I've said above I am in a defecit and dont even have enough to cover my main bills. I know this used to be impossible to complete a DRO as you needed to have a surplus but no more than £50.00. Is this ok? Payplan still reccomended the DRO so I am guessing that even though my income doesnt cover my essentials they beleive the DRO will go through because there is no way I can pay my debts.

3) Bank accounts:

My main bank account is in an overdraft which I am obviously including in the DRO and therefore this account will of course be closed.

I know the general advice is get a basic cash card but I owe Barclays money so cant go with them and Co Op do not accept undischarged bankrupts so theyre not an option. I do however have another bank account with a completely different bank (no ties or parent companies attached); no overdraft facility, no credit card, no loans with this bank and no contactless card it is simply an everyday current account. Will this be closed? I am worried my salary will get lost if they close this account after the DRO goes through??

4) Payplan have sent the forms for the DRO to me. I understand I pay the £90 and fill in the forms, but providing I complete all of these this week, how soon before they submit the application?

5) What evidence do I need? I imagine it is 3 months payslips, 3 months bank statements showing my salary going in and then proof of all my debts and their balances- do these have to be statements or can they be what I have confirmed by calling the creditors up on the phone to make it quicker.

6) What happens in 12 months after the DRO finishes. If my situation is still the same, how do I proove that? do they ask for the last years bank statements? payslips? or is it simply that once the DRO goes through it remains unless you inform them of a change to income ect.?

SORRY for all my questions... I am just apprehensive, nervous, relieved and curious all at the same time. I am being totally honest about everything because I dont want anything to come back and bite me, but I just would like to clarify these points so I am in a position of understanding where I am at.

Many thanks

Carl
x

fatbelly

Briefly...
1. Let payplan do the calculation. I'd use an average of the past 3 months (if that worked)
2. You are showing a defecit so (1) is a bit irrelevant. You do need to have a think/chat about how you will survive without credit but it won't stop your application.
3. Use the other bank account. If it's Nat West it will be downgraded to a basic account but with other banks there should be no issues.
4. ask payplan. They have to get a credit report so I would guess 3 weeks if no problems.
5. ask payplan. every organisation has their own criteria re evidence.
6. the dro just completes. You do not even get a letter at the end.

debtorwithaquestion

fatbelly wrote: »

Briefly...
1. Let payplan do the calculation. I'd use an average of the past 3 months (if that worked)
2. You are showing a defecit so (1) is a bit irrelevant. You do need to have a think/chat about how you will survive without credit but it won't stop your application.
3. Use the other bank account. If it's Nat West it will be downgraded to a basic account but with other banks there should be no issues.
4. ask payplan. They have to get a credit report so I would guess 3 weeks if no problems.
5. ask payplan. every organisation has their own criteria re evidence.
6. the dro just completes. You do not even get a letter at the end.

Thanks for your advice, I very much appreciate it. In terms of my income what I want to avoid is it seeming as if I am not being honest- but generally when I receive a bonus it still only makes me able to pay out my essential bills. But as it can't be relied on as definite income I will ask pay plan. I imagine what you said about averaging my income would be a good idea because that's a more honest reflection of what I actually receive. Very anxious to get the ball rolling but the relief once it's gone through will be phenomenal.

thanks again:T

debtorwithaquestion

In case this helps anyone else:

My bank (Santander) confirmed they will not close my account after the DRO goes through because I have no credit facility I.e overdraft / contact less card or any bank charges so therefore they have no reason to close or downgrade my account (it's an everyday current account with visa debit card)

Pay plan confirmed that it is basic pay that has to be used in your budget because this is the only guaranteed income you have- bonuses are not definite so not to be taken into consideration - quite a relief to have got some clarity on this.

Don't know if that helps anyone else but hope so. X

Shelleyblueyez

Hi! I've just been recommended a DRO by a charity! I feel it's an unrealistic budget, but I've no other choice, with additional essential
Items left out! ... or not contemplated. It was quite empowering deleting all the direct debits though! But I feel the stress is yet to come, with growing children to feed and clothe, with an allowance of £5:00 per month for school uniform! :0 it's not gonna happen is it! ... Don't get me wrong, I'm eternally greatful for the assistance, I work hard, I've got a degree and I'm doing a post grad. I just can't get a qualified post!!

yours thankfully!

Just 1 qu?! ... Will my phone company ask for my phone and I pads bk?! Was Wondering if I could write them
Into the debt or not? (I know it sounds bad, but they belong to the kids, n I have a moral compass!) x

#frustrated! :@